75 jobs to be lost at Shannon diamond company

Shannon-based industrial diamond manufacturing company Element Six Ltd yesterday announced 75 job losses as part of a restructuring…

Shannon-based industrial diamond manufacturing company Element Six Ltd yesterday announced 75 job losses as part of a restructuring programme.

Two-thirds of the redundancies will be support staff, and the balance will come from production operations.

While some of the job losses from the current 564 workforce, will be immediate, the remainder will be sought over the next 12 months.

"This reduction in group costs is necessary as the industrial diamond business is highly- competitive, with increased competition from lower-cost economies, in particular from the Far East," said a company statement.

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"These redundancies will be open to all staff subject to the needs of the business. The company hopes and expects that the redundancies will be achieved voluntarily."

The company said the redundancy package would be six weeks' pay for each year of service together with statutory redundancy, subject to a ceiling of 2½ years' salary.

Ken Sullivan, general manager of the Shannon plant, added that the company's business was strong, and that this programme would ensure continued growth and stability in the longer term.

"The Shannon operation will continue to be at the front end of the business, incorporating the group functions of sales and marketing, finance, processing and shipping and IT," Mr Sullivan said.

Element Six, formerly DeBeers, supplies high-quality industrial diamond and the complementary cubic boron nitride abrasive materials.

Clare Fine Gael deputy and party spokesman on small business Pat Breen yesterday called for the IDA performance in the county to be examined.

"Clare has had just one start-up and one expansion of IDA-assisted companies since 2000. Meanwhile, there has been a steady decline in the manufacturing jobs base in the county."

He said the Government had failed to meet its commitments on balanced regional development and implementing the National Spatial Strategy.

Shannon Development said it was disappointed to learn of the redundancies, but added that it was satisfied that Element Six would continue to provide "high-quality employment" at the Shannon Free Zone.